August 16, 2010 -
New YorkState is one of the top destinations
for business aircraft in the country, but many businesses choose not to
base their aircraft at New
York
airports because of the state's especially high taxes.

While neighboring
states such as Massachusetts and Connecticut have tax policies designed
to attract general aviation (GA) aircraft, New York imposes a sales and
use tax on all GA airplanes that encourages basing them outside the
state's borders.

"We have an
aviation sector in this state that is incredibly productive," said state
Assemblywoman Donna Lupardo (D), "but continues to perform well short of
its potential because of a competitive disadvantage with neighboring
states, due in large measure to our tax treatment of GA aircraft."

Lupardo recognized
that when companies operating in New York decide to base their flight departments in Massachusetts or Connecticut,
New York
loses jobs ? specifically, fuel suppliers, equipment and parts
manufacturers, maintenance facilities, flight schools and FBOs. That's
why Lupardo decided earlier this year to support state Senator William
Stachowski (D) and Assemblyman Robin Schimminger (D) in forming the New
York Legislative Aviation Caucus.

"Airplanes are
mobile assets," said Lupardo. "Especially in tough economic times, when
businesses are particularly sensitive to cost pressures, operators will
base them where it's least prohibitive. Right now that means fewer jobs
in New York."

Stachowski and
Schimminger partnered with the New York Aviation Management Association
(NYAMA) to rally fellow legislators behind the idea of establishing the
caucus to advance aviation in the state.

NYAMA members
encouraged their representatives in Albany to join the New
York Legislative Aviation Caucus during an annual Advocacy Day in March,
meeting with lawmakers and following up with letters and phone calls.

"We let the
legislators who formed the caucus know we'd support their goals and
would serve as a resource," said Joel Russell, manager of Albany
International Airport (ALB) and President of NYAMA. "We're reaching out
to their colleagues and providing research and information to back their
proposals."

NBAA's Northeast
Regional Representative, Dean Saucier, encouraged NYAMA and other
business aviation associations in New York
to support the formation of a state-level caucus after witnessing the
effectiveness of such a group in Massachusetts. Over the last five years, the
Massachusetts
caucus and the industry have worked together to keep that state's tax
exemption in order to continue attracting business aircraft.

National Business
Aviation Association or NBAA, is a non-profit and nonpartisan
corporation based in Washington, DC.
Representing more than 8,000 companies is an industry organization
representing companies that rely on general aviation aircraft. "NBAA
always supports advocacy efforts by local groups and encourages
grassroots campaigns like this one in New York," said Saucier.

Saucier
participated in the NYAMA Advocacy Day, sharing NBAA resources on the
economic benefits of business aviation with lawmakers and facilitating
grassroots collaboration with like-minded groups, including the Eastern
Region Helicopter Council (ERHC), Long Island Business Aviation
Association (LIBAA), Westchester Aviation Association (WAA), Aircraft

Owners and Pilots Association (AOPA) and the Business Aviation
Management Group (BAMG).

The caucus now has
a bipartisan group of 56 members - a quarter of the legislature ? in
both the state Senate and Assembly, representing all areas of
New York.

"Every type of aviation
stakeholder in New York supported this
caucus," said Russell, "from GA reliever airports to commercial airlines
to maintenance and engineering companies to company flight departments.
The aviation community is a broad spectrum, but it's all jobs."

Lupardo now leads
the caucus and is continuing to partner with NYAMA in recruiting her
colleagues to join. The caucus's main goal is to pass the New York
Aviation Jobs Act, repealing the sales and use tax on GA aircraft and
replacing $15 million per year in bond measure airport funding that
expired last year.

"It's our job to
expose fellow legislators to stories about how we're losing business to
other states," said Lupardo. "Aviation contributes over $35 billion to
economic activity in New York. That's nearly
350,000 jobs and $2.8 billion in tax revenue, but it could be higher."

Russell
is optimistic that together, the caucus and the aviation community will
be successful in drawing more business aircraft to New York through lower
taxes and better airports, if they're persistent.

"It's always difficult to promote tax relief in a year when the budget
is getting slashed," said Russell, "but we were encouraged by the
enthusiasm with which the legislators formed the caucus. The state's own
reports show that reducing taxes on airplanes drives commerce to the
state and in the medium term, increases the state's overall tax revenue.
It's a win-win."